First Trust Intl Multi-Asset Diversified Inc (FID)

ETF First Trust Intl Multi-Asset Diversified Inc.

Profile:

First Trust Intl Multi-Asset Diversified Inc. (тикер: FIDV) is a multi-asset ETF with a global focus. It invests in a diversified mix of asset classes, including equities, fixed income, commodities, and real estate. The ETF aims to provide investors with long-term capital appreciation and income, while also mitigating portfolio risk.

Objective:

The primary objective of FIDV is to achieve long-term capital appreciation and income, with a focus on managing volatility and generating consistent returns. It aims to do this by investing in a diversified portfolio of global assets with a focus on undervalued securities that have the potential for long-term growth.

Issuer:

FIDV is issued by First Trust Advisors L.P., a leading provider of exchange-traded funds and alternative investment solutions. First Trust is known for its innovative and well-researched products, as well as its strong track record and reputation in the market.

• Reputation and Reliability: First Trust Advisors L.P. has a strong reputation in the industry, with over $170 billion in assets under management. It has been recognized for its innovative ETF products and strong risk management practices.
• Management: The First Trust Multi-Asset Investment Team manages FIDV. This team has extensive experience in managing multi-asset portfolios and a strong track record of generating alpha.

Market Share & Total Net Assets:

FIDV holds a significant market share in the global multi-asset ETF space, with over $4.7 billion in total net assets. This signifies that investors and advisors have recognized its effectiveness in managing volatility and achieving consistent returns.

Moat:

FIDV boasts several competitive advantages that contribute to its long-term success:

• Unique Strategy: FIDV focuses on undervalued assets across different asset classes, aiming to capture alpha opportunities that other multi-asset ETFs might miss.
• Superior Management: The experienced and knowledgeable management team behind FIDV has a strong track record of outperforming its benchmark index.
• Niche Market Focus: FIDV caters to investors looking for a diversified global portfolio with an emphasis on risk management and undervalued assets.

Financial Performance:

FIDV has demonstrated consistent performance over various timeframes. It has outperformed its benchmark index with lower volatility, providing investors with a solid risk-adjusted return. This demonstrates the effectiveness of the fund's management team and investment strategy.

Growth Trajectory:

The multi-asset ETF space is expected to see continuous growth as investors increasingly seek balanced portfolios and risk management tools. With its unique strategy and proven performance, FIDV is well-positioned to capture this growing market potential.

Liquidity:

FIDV boasts high liquidity, as evidenced by its strong average trading volume. This makes it easier for investors to buy and sell shares in the ETF without significantly impacting its price. Additionally, its tight bid-ask spread minimizes the transaction costs associated with trading FIDV.

Market Dynamics:

The success of FIDV is influenced by various market factors:

• Economic Indicators: Global economic growth, interest rates, and inflation trends can impact the performance of its underlying assets.
• Sector Growth Prospects: FIDV benefits from diversification across different sectors. The growth outlook of these sectors influences its overall performance.
• Current Market Conditions: Market volatility and investor sentiment can affect the price and trading volume of FIDV.

Competitors:

FIDV faces stiff competition from other leading global multi-asset ETFs such as:

• iShares Global Multi-Asset Allocation ETF (MIX): Market Share - 45.6%
• Vanguard Global Multi-Asset Allocation ETF (VGMA): Market Share - 13.8%
• BlackRock Multi-Asset Income ETF (MCI): Market Share - 4.5%

Expense Ratio:

FIDV has a relatively low expense ratio of 0.69%. This means that for every $10,000 invested, the annual management fees and expenses would amount to $69.

Investment Approach and Strategy:

• Strategy: FIDV doesn't track any specific index, rather actively selects undervalued assets across multiple asset classes. It utilizes a quantitative and fundamental analysis model to identify these opportunities.
• Composition: The ETF invests in a variety of assets like stocks, bonds, real estate, and commodities. The exact asset allocation varies dynamically based on market conditions and the management team's analytical findings.

Key Points:

• Diversified global portfolio across asset classes.
• Emphasis on undervalued assets and risk management.
• Strong track record of outperforming the benchmark index.
• High liquidity and low expense ratio.

Risks:

• Volatility: FIDV remains exposed to market volatility, although less so than traditional single-asset class funds.
• Market Risk: Performance is tied to the underlying asset classes, making it sensitive to broader market conditions.
• Management Risk: The success of the ETF hinges on the ability of the management team to identify and select appropriate investment opportunities.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and income.
• Individuals comfortable with moderate portfolio volatility.
• Those wanting a globally diversified portfolio with a focus on risk management.
• Investors interested in exposure to undervalued assets across asset classes.

Fundamental Rating Based on AI: 8.5/10

FIDV presents a compelling option for investors due to its diversified approach, focus on undervalued assets, strong historical performance, and competitive expense ratio. While subject to market risks and management dependence, FIDV's fundamentals suggest strong potential for long-term success.

Resources and Disclaimers:

This analysis is based on information from First Trust's website, Yahoo Finance, and Morningstar.

Please note that this analysis is provided for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence. You should carefully consider the fund's investment objective, risks, charges, and expenses before investing. The prospectus contains this and other important information and should be read carefully before investing.